RE:RE:I readThe idea is to lock in revenues against costs, and smooth out the numbers overall.
Plus you get a little premium most times same as writing covered calls on a stock.
Even at those numbers what Peyto comes out with in the next few quarters will be really really good based against the last 8 years I think.
On top of our dividends a good chunk say $50 million per quarter would be nice to see put on the debt, plus have a little growth too.
The key is not anything they are doing but to keep these prices long term with some consistency and not go too far to the negative.
With inventories low, production muted, costs higher due to covid and suppy constraints with staffing issues I just don't see a huge flood to the market.
Add in historically high LNG shipments (remember some of that just dissipates into thin air and requires energy to get to LNG).
Growth in demand toooooooooo
Just can't wait.